Mexico Remains 7th Largest Vehicle Producer

Mexico retains its position as the seventh-largest vehicle producer globally, with a production of 4,002,047 units in 2023, according to recent data from the International Organization of Motor Vehicle Manufacturers (OICA). The country is steadily competing with its close counterparts, Germany and South Korea.

Germany, holding the sixth position, manufactured 4,109,371 vehicles, while South Korea, in fifth place, assembled 4,243,597 units. Globally, vehicle production witnessed a significant surge, surpassing 93 million units in 2023, marking a notable recovery from the pandemic-induced downturn in previous years. However, the industry has yet to reach the peak of 2017 when 97 million units were produced.

The top ten manufacturing countries experienced robust growth rates, with China leading the pack with a 12% increase. Notable performers also include Japan (15%), South Korea (13%), Germany (18%), Mexico (14%), and Spain (10%). Major players in the manufacturing sector, covering both conventional and electric vehicles, include China, the United States, Japan, India, South Korea, Germany, Mexico, Spain, Brazil, and Thailand. 

The year 2023 marked a pivotal moment for the automotive industry, indicating a notable recovery from the disruptions caused by the Covid-19 pandemic, including supply chain issues and semiconductor shortages.

However, challenges persist, particularly in Mexico, where port congestion and customs delays hinder the smooth flow of goods, compounded by the influx of Chinese automotive brands. These delays impact various aspects of the automotive sector, from supply chain logistics to commercialization, as reported by the Mexican Automotive Industry Association (AMIA).

The global rise in vehicle production is further propelled by the rapid expansion of electric vehicle manufacturing, with China emerging as a dominant player. According to OICA, in 2023 alone, China sold 30 million electric vehicles, solidifying its position as the world's primary exporter in this segment.